Resource up at Young-Davidson (December 18, 2006)

Resources at the Young-Davidson gold project near Matachewan, Ont., have grown substantially in a new estimate commissioned by Northgate Minerals (NGX-T, NXG-X).

The new calculation, done by consulting firm Scott Wilson Roscoe Postle, considered three underground zones, Lucky, Lower Young Davidson, and Lower Boundary. It puts total measured and indicated resources underground at 5.2 million tonnes grading 3.6 grams gold per tonne. An earlier estimate by Micon International estimated 6.8 million tonnes grading 2.1 grams per tonne in a proposed open pit, which does not overlap with the new estimate.

Inferred resources in the three zones considered by the Scott Wilson Roscoe Postle estimate amount to 4.7 million tonnes at 3.7 grams per tonne. Micon had earlier put an inferred estimate of 3.9 million tonnes grading 4 grams on the Upper Boundary zone, plus 330,000 tonnes grading 1.3 grams per tonne in the proposed open pit.

One new hole at the property, YD06-27, intersected four gold zones in the area between the Lower Boundary and Lower Young Davidson zones. An 18.3-metre core length graded 7.06 grams gold per tonne, representing a true thickness of 15.4 metres. Three other intervals, ranging from 5.2 to 6.7 metres true thickness, graded in the 2.4-gram to 3.8-gram range.